Dealers report chunky buying on dips below the 97.10 level in USD/JPY from a New York-based bank. Selling from Japanese exporters and profit-taking from short-term specs was the theme overnight as USD/JPY gave back some of Friday’s gains. Upbeat Japanese economic data was a catalyst as well.
Also weighing on the market this week is a large coupon payment this week by the US Treasury which could prompt some repatriation of the proceeds by Japanese institutional investors.
USD/JPY trades quietly now at 97.17.